BILL NUMBER: SB 1718	CHAPTERED  09/26/00

	CHAPTER   679
	FILED WITH SECRETARY OF STATE   SEPTEMBER 26, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 24, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	AMENDED IN ASSEMBLY   AUGUST 30, 2000
	AMENDED IN ASSEMBLY   AUGUST 25, 2000
	AMENDED IN ASSEMBLY   AUGUST 7, 2000
	AMENDED IN ASSEMBLY   JUNE 29, 2000
	AMENDED IN SENATE   MAY 4, 2000
	AMENDED IN SENATE   MAY 1, 2000

INTRODUCED BY   Senator Sher and Assembly Members Davis and Shelley
   (Coauthors:  Senators Chesbro, Karnette, and Murray)
   (Coauthors:  Assembly Members Alquist, Bock, and Kuehl)

                        FEBRUARY 23, 2000

   An act to amend Section 1793.22 of the Civil Code, relating to
warranties.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1718, Sher.  Warranties:  new motor vehicles.
   Existing law requires every manufacturer of consumer goods sold in
this state, including motor vehicles, to maintain sufficient service
and repair facilities to carry out the terms of its express
warranties.  Existing law further provides that if a manufacturer or
its representative is unable to service or repair a new motor vehicle
to conform to the applicable express warranties after a reasonable
number of attempts, the manufacturer shall either promptly replace
the vehicle or make restitution to the buyer, at the buyer's option.
Existing law provides that it is rebuttably presumed that a
reasonable number of attempts to conform a new motor vehicle to its
warranty have been made if, within 18 months of delivery or 18,000
miles, whichever is first, (1) the same nonconformity has been
subject to repair at least 4 times by the manufacturer or its agents
and the manufacturer has been directly informed of the need for the
repair at least once, or (2) the vehicle has been out of service
because of repairs to nonconformities by the manufacturer or its
agents for a cumulative total of more than 30 calendar days since
delivery to the buyer.
   The bill would additionally provide for the establishment of the
presumption when a nonconformity that results in a condition likely
to cause death or serious bodily injury if the vehicle is driven, has
been subject to repair 2 or more times by the manufacturer or its
agents and the buyer or lessee has at least once directly notified
the manufacturer of the need for the repair.  This bill would also
make other related changes.
   Existing law defines a new motor vehicle for the purposes of the
above provisions to mean (1) a new motor vehicle used or bought
primarily for personal, family, or household purposes or (2) a new
motor vehicle used primarily for business and personal, family, or
household purposes by a person or organization, as specified, to
which not more than 5 vehicles are registered in this state.
   This bill would revise the 2nd definition to include only a new
motor vehicle with a gross vehicle weight under 10,000 pounds bought
or used primarily for business purposes, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1793.22 of the Civil Code is amended to read:
   1793.22.  (a) This section shall be known and may be cited as the
Tanner Consumer Protection Act.
   (b) It shall be presumed that a reasonable number of attempts have
been made to conform a new motor vehicle to the applicable express
warranties if, within 18 months from delivery to the buyer or 18,000
miles on the odometer of the vehicle, whichever occurs first, one or
more of the following occurs:
   (1) The same nonconformity results in a condition that is likely
to cause death or serious bodily injury if the vehicle is driven and
the nonconformity has been subject to repair two or more times by the
manufacturer or its agents, and the buyer or lessee has at least
once directly notified the manufacturer of the need for the repair of
the nonconformity.
   (2) The same nonconformity has been subject to repair four or more
times by the manufacturer or its agents and the buyer has at least
once directly notified the manufacturer of the need for the repair of
the nonconformity.
   (3) The vehicle is out of service by reason of repair of
nonconformities by the manufacturer or its agents for a cumulative
total of more than 30 calendar days since delivery of the vehicle to
the buyer.  The 30-day limit shall be extended only if repairs cannot
be performed due to conditions beyond the control of the
manufacturer or its agents.  The buyer shall be required to directly
notify the manufacturer pursuant to paragraphs (1) and (2) only if
the manufacturer has clearly and conspicuously disclosed to the
buyer, with the warranty or the owner's manual, the provisions of
this section and that of subdivision (d) of Section 1793.2, including
the requirement that the buyer must notify the manufacturer directly
pursuant to paragraphs (1) and (2).  The notification, if required,
shall be sent to the address, if any, specified clearly and
conspicuously by the manufacturer in the warranty or owner's manual.
This presumption shall be a rebuttable presumption affecting the
burden of proof, and it may be asserted by the buyer in any civil
action, including an action in small claims court, or other formal or
informal proceeding.
   (c) If a qualified third-party dispute resolution process exists,
and the buyer receives timely notification in writing of the
availability of that qualified third-party dispute resolution process
with a description of its operation and effect, the presumption in
subdivision (b) may not be asserted by the buyer until after the
buyer has initially resorted to the qualified third-party dispute
resolution process as required in subdivision (d).  Notification of
the availability of the qualified third-party dispute resolution
process is not timely if the buyer suffers any prejudice resulting
from any delay in giving the notification.  If a qualified
third-party dispute resolution process does not exist, or if the
buyer is dissatisfied with that third-party decision, or if the
manufacturer or its agent neglects to promptly fulfill the terms of
the qualified third-party dispute resolution process decision after
the decision is accepted by the buyer, the buyer may assert the
presumption provided in subdivision (b) in an action to enforce the
buyer's rights under subdivision (d) of Section 1793.2.  The findings
and decision of a qualified third-party dispute resolution process
shall be admissible in evidence in the action without further
foundation.  Any period of limitation of actions under any federal or
California laws with respect to any person shall be extended for a
period equal to the number of days between the date a complaint is
filed with a third-party dispute resolution process and the date of
its decision or the date before which the manufacturer or its agent
is required by the decision to fulfill its terms if the decision is
accepted by the buyer, whichever occurs later.
   (d) A qualified third-party dispute resolution process shall be
one that does all of the following:
   (1) Complies with the minimum requirements of the Federal Trade
Commission for informal dispute settlement procedures as set forth in
Part 703 of Title 16 of the Code of Federal Regulations, as those
regulations read on January 1, 1987.
   (2) Renders decisions which are binding on the manufacturer if the
buyer elects to accept the decision.
   (3) Prescribes a reasonable time, not to exceed 30 days after the
decision is accepted by the buyer, within which the manufacturer or
its agent must fulfill the terms of its decisions.
   (4) Provides arbitrators who are assigned to decide disputes with
copies of, and instruction in, the provisions of the Federal Trade
Commission's regulations in Part 703 of Title 16 of the Code of
Federal Regulations as those regulations read on January 1, 1987,
Division 2 (commencing with Section 2101) of the Commercial Code, and
this chapter.
   (5) Requires the manufacturer, when the process orders, under the
terms of this chapter, either that the nonconforming motor vehicle be
replaced if the buyer consents to this remedy or that restitution be
made to the buyer, to replace the motor vehicle or make restitution
in accordance with paragraph (2) of subdivision (d) of Section
1793.2.
   (6) Provides, at the request of the arbitrator or a majority of
the arbitration panel, for an inspection and written report on the
condition of a nonconforming motor vehicle, at no cost to the buyer,
by an automobile expert who is independent of the manufacturer.
   (7) Takes into account, in rendering decisions, all legal and
equitable factors, including, but not limited to, the written
warranty, the rights and remedies conferred in regulations of the
Federal Trade Commission contained in Part 703 of Title 16 of the
Code of Federal Regulations as those regulations read on January 1,
1987, Division 2 (commencing with Section 2101) of the Commercial
Code, this chapter, and any other equitable considerations
appropriate in the circumstances.  Nothing in this chapter requires
that, to be certified as a qualified third-party dispute resolution
process pursuant to this section, decisions of the process must
consider or provide remedies in the form of awards of punitive
damages or multiple damages, under subdivision (c) of Section 1794,
or of attorneys' fees under subdivision (d) of Section 1794, or of
consequential damages other than as provided in subdivisions (a) and
(b) of Section 1794, including, but not limited to, reasonable
repair, towing, and rental car costs actually incurred by the buyer.

   (8) Requires that no arbitrator deciding a dispute may be a party
to the dispute and that no other person, including an employee,
agent, or dealer for the manufacturer, may be allowed to participate
substantively in the merits of any dispute with the arbitrator unless
the buyer is allowed to participate also.  Nothing in this
subdivision prohibits any member of an arbitration board from
deciding a dispute.
   (9) Obtains and maintains certification by the Department of
Consumer Affairs pursuant to Chapter 9 (commencing with Section 472)
of Division 1 of the Business and Professions Code.
   (e) For the purposes of subdivision (d) of Section 1793.2 and this
section, the following terms have the following meanings:
   (1) "Nonconformity" means a nonconformity which substantially
impairs the use, value, or safety of the new motor vehicle to the
buyer or lessee.
   (2) "New motor vehicle" means a new motor vehicle that is bought
or used primarily for personal, family, or household purposes.  "New
motor vehicle" also means a new motor vehicle with a gross vehicle
weight under 10,000 pounds that is bought or used primarily for
business purposes by a person, including a partnership, limited
liability company, corporation, association, or any other legal
entity, to which not more than five motor vehicles are registered in
this state.  "New motor vehicle" includes the chassis, chassis cab,
and that portion of a motor home devoted to its propulsion, but does
not include any portion designed, used, or maintained primarily for
human habitation, a dealer-owned vehicle and a "demonstrator" or
other motor vehicle sold with a manufacturer's new car warranty but
does not include a motorcycle or a motor vehicle which is not
registered under the Vehicle Code because it is to be operated or
used exclusively off the highways.  A demonstrator is a vehicle
assigned by a dealer for the purpose of demonstrating qualities and
characteristics common to vehicles of the same or similar model and
type.
   (3) "Motor home" means a vehicular unit built on, or permanently
attached to, a self-propelled motor vehicle chassis, chassis cab, or
van, which becomes an integral part of the completed vehicle,
designed for human habitation for recreational or emergency
occupancy.
   (f) (1) Except as provided in paragraph (2), no person shall sell,
either at wholesale or retail, lease, or transfer a motor vehicle
transferred by a buyer or lessee to a manufacturer pursuant to
paragraph (2) of subdivision (d) of Section 1793.2 or a similar
statute of any other state, unless the nature of the nonconformity
experienced by the original buyer or lessee is clearly and
conspicuously disclosed to the prospective buyer, lessee, or
transferee, the nonconformity is corrected, and the manufacturer
warrants to the new buyer, lessee, or transferee in writing for a
period of one year that the motor vehicle is free of that
nonconformity.
   (2) Except for the requirement that the nature of the
nonconformity be disclosed to the transferee, paragraph (1) does not
apply to the transfer of a motor vehicle to an educational
institution if the purpose of the transfer is to make the motor
vehicle available for use in automotive repair courses.
